Prime Bank Promoter Sentenced to 30 Years in Prison

$74 Million dollar scheme, defrauded over 3,200 investors according to SEC

The Commission announced the promoter of a fraudulent prime bank scheme, which raised over $74 million from at least 3,200 U.S. and Canadian victims was sentenced to 30 years in prison. The promoter was convicted on multiple counts of wire fraud, mail fraud and securities fraud in the criminal trial, in which five other people were either convicted or pleaded guilty.

The criminal case followed the filing of an action by the SEC in May 2000, in which emergency relief including an asset freeze was obtained. The Commission’s complaint alleged that the defendants promised investors in two programs, Oakleaf International and Rosewood International, a return of 120% per year, as well as preservation of their invested funds, through an unspecified “trading program”. The complaint alleged that, contrary to these representations, the defendants misappropriated investor money for personal expenses and failed to engage in any profitable investments.

In the civil case, which has been stayed pending the resolution of the parallel criminal action, the SEC also obtained the appointment of a Receiver to marshal assets and distribute them back to defrauded investors. To date, the Receiver has collected approximately $20 million on behalf of investors.

Nothing herein is intended as legal or financial advice. The law is different in different jurisdictions, and the facts of a particular matter can change the application of the law. Please consult an attorney or your financial advisor before acting upon the information contained in this article.

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